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Nifty mega caps are going nowhere. Why Samco CIO Umesh Mehta put 75% of his Flexicap fund beyond largecaps
Economic Times 11 hrs ago·30 Aug 2026, 8:43 am
Nifty mega caps have struggled to gain momentum recently, prompting Samco Asset Management's CIO Umesh Mehta to reduce his fund's exposure to these large companies. He believes that institutional ownership limits are restricting fresh buying, while earnings growth is shifting towards mid- and small-cap stocks. Consequently, his Flexicap fund has allocated 70–75% of its portfolio to sectors and stocks outside the top large-caps.
This strategic shift highlights a broader market trend where investors are looking for growth opportunities beyond the largest, most expensive stocks. Mehta points to specific areas like defence, power, AI ancillaries, and gold as potential beneficiaries of this rotation. He also cautions that liquidity pressures from new Initial Public Offerings (IPOs) could continue to weigh on broader market sentiment.
For investors, this news suggests that the dominance of mega caps may be waning. It signals a potential opportunity to diversify into other market segments. However, given the volatility in smaller stocks, investors should remain cautious and focus on their long-term financial goals rather than reacting to short-term market noise.
Excerpt from Economic Times
Mutual Fund CIO Umesh Mehta says Nifty mega caps may remain subdued as institutional ownership limits fresh buying and earnings momentum shifts towards mid- and small-cap stocks. He explains why Samco Flexicap Fund has allocated 70–75% of its portfolio beyond large caps, while highlighting opportunities in defence,…Read the original at Economic Times
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